Fannie Mae has purchased mortgage servicing rights on about 64,000 of its own loans from Citigroup (C), as the nation’s 3rd largest lender looks to shed future liabilities tied to its servicing practices.

The unusual transaction was announced late Wednesday, with the bank saying it had reached a definitive agreement with the GSE to sell servicing rights tied to approximately $10.3 billion of unpaid principal balances on mortgages owned by the GSE.

“The sale includes the majority of the delinquent loans serviced by CitiMortgage for Fannie Mae, and it represents nearly 20% of the total loans serviced by CitiMortgage that are 60 days or more past due,” the bank said in a statement. Nearly all of the loans transfered are delinquent.

The agreement means that Citi and Fannie Mae have “substantially resolved pending and future compensatory fee claims related to Citi’s servicing practices on these loans,” the bank said.

While the bank didn’t elaborate further on the matter, compensatory fees typically refer additional fees a GSE may choose to levy on a lender/servicer should certain set standards not be met.

Compensatory fees can be assessed for delayed remittance of claim proceeds, delays in the liquidation process, late filing of a final request for reimbursement, and other timeline-related matters.

Citi said the deal with Fannie Mae was in line with the bank’s objective of reducing assets and expenses within its Citi Holdings unit, and said it would “continue to explore opportunities to further reduce Citi Holdings assets.”

The loans involved in the MSR hand-off will begin being transferred to another servicer during the first quarter, although the bank cautioned that the massive servicing transfer would take as long as two quarters to complete.

“Citi will work diligently to ensure a smooth transition in the servicing of these loans for impacted customers,” the bank said.

There is no official word yet on where the now Fannie Mae-owned MSRs are likely to end up.

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Citigroup Inc. (C), the third-largest U.S. lender, agreed to sell servicing rights for about 64,000 Fannie Mae residential first-mortgage loans as it seeks to reduce a portfolio of unwanted assets.

The contracts, held in the Citi Holdings unit, are tied to loans with about $10.3 billion in unpaid principal balances, the New York-based bank said today in a statement. Fannie Mae acquired the rights and will transfer the servicing of the loans to another firm, Andrew Wilson, a Fannie Mae spokesman, said in a phone interview. Terms weren’t specified.

“This transaction advances Citi’s ongoing objective to reduce assets and expenses within Citi Holdings and more efficiently aligns Citi’s mortgage servicing operations with current business needs,” the bank said.

Citigroup had reduced assets in the Citi Holdings portfolio to $122 billion at the end of September. The bank was selling servicing rights on $63 billion in loans in October, people briefed on the offer said at the time. Mark Rodgers, a bank spokesman, declined to comment on whether today’s deal is part of that larger amount.

As part of the transaction, Citigroup paid Fannie Mae to limit its liability related to the servicing, Wilson said. He declined to provide the amount.

The deal “substantially resolved pending and future compensatory fee claims related to Citi’s servicing practices on these loans,” the bank said in the statement.

The sale includes the majority of overdue loans serviced by Citigroup for Fannie Mae and represents almost 20 percent of the loans serviced by the firm that are 60 days or more past due, the bank said. The transfer will begin this quarter and continue into the third quarter

I would appreciate if anyone could advise what to do about Judge Diana Lewis in the Palm Beach County Foreclosure Court Sabotaging my bank approved short sale.
Re Judge Diana Lewis
of the 15th Judicial Circuit
Palm Beach County Court House
205 North Dixie Hwy, West Palm Beach, FL 33401
Telephone: 561-355-2097
CASE NO: 502010CA017857 /JP MORGAN CHASE BANK vs. EWALD DIENHART, WHO IS 79 YEARS OLD
JP Morgan has given final approval for the short sale of our home. JP Morgan, the Buyer and Closing agent have all stated they need 45 days to close and requested I ask the judge to cancel the Foreclosure auction date of Feb 6, 2014 to be rescheduled to Feb 28, 2014 or later. When trying to get a date for the rescheduling Motion to be heard; The Judge’s assistant Nicolette Anderson informed me that the Judge refuses to allow an extension. This is unreasonable because 45 days is the widely recognized standard time needed to purchase a property. The Judge is unreasonably sabotaging the Short Sale and preventing JP Morgan from complying with our Attorney General-Pam Bondi’s settlement, and preventing Banks, homeowners, Real Estate Agents, Lenders, Lawyers, Closing Agents and all those working to manage this difficult challenge. The Judge is also causing delays of the Short Sale process and clogging the court room by not allowing parties adequate time to complete necessary steps to complete a short sale and thereby necessitating additional action to allow adequate time such as Motions for Continuances, which causes even more delays. So much time and effort is needed by all involved and not knowing if they will have adequate time to complete the process, causes the process to stall more by causing everyone to wait for each additional Motion to be filed, heard and ruled upon before proceeding further. I have been informed by JP Morgan and the Closing Agent that; after the JP Morgan issued preliminary approval of the short sale; JP Morgan’s final approval was delayed 5 weeks due to the Judge not allowing enough time for traditional delays due to the Holiday Season. The Judge has caused all these delays by not allowing adequate time to complete the many steps of the short sale process and now refuses to allow time to compensate for the delays she has caused and wasting everyone’s time, energy and money for nothing. Judge Diana Lewis is a disaster, even when the banks and homeowners agree to a settlement ; instead of helping the short sale process she harms everyone.

If you represent yourself, file a JQC complaint against her for her bias and prejudice as well as violating your RIGHT to due process and equal protection. She has a duty and responsibility to protect your rights. Look up the Judicial Cannons for Florida, there are seven, and when you look over the Cannons and compare each to her actions, you will most likely find all kinds of violations, list each and every subsection that is violated and detail which of her specific actions violated that Cannon and why. File that into the case, and respectfully demand her recusal (removal) for fear you cannot get a fair and impartial ruling from this judge. If you have an attorney, don’t bother, your dead in the water.

Yes when is he going to jail?!!!! What is going on? Its seems the jail system is only for We The Sheeple. He is probably friends with Rick Scott and Pam Bondi. He should be ordered to repay all his earnings he made and all those homes should be given back to the home owners, but that will never happen. This is as good as is gets. The Sheeple will have to
except that the Republicans and Democrats all work for the Banksters and the New World Order. Wake Up Everyone!

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